us bancorp (USB) Key Developments

U.S. Bancorp Announces Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended June 30, 2015; Announces Net Charge-Offs for the Second Quarter Ended June 30, 2015; Provides Net Charge-Offs Guidance for the Third Quarter of 2015

Jul 15 15

U.S. Bancorp announced unaudited consolidated earnings results for the second quarter and six months ended June 30, 2015. For the quarter, the company reported net interest income of $2,716 million against $2,689 million a year ago. Income before income taxes was $2,025 million against $2,056 million a year ago. Net income applicable to U.S. Bancorp common shareholders was $1,417 million or $0.80 basic and diluted per share against $1,427 million or $0.78 diluted per share a year ago. Net interest income growth over the second quarter of 2014 was driven by 9.1% growth in average earning assets, partially offset by the impact of the 2014 wind down of the Checking Account Advance (CAA) product. Return on average assets was 1.46% against 1.60% a year ago. Return on average common equity was 14.3% against 15.1% a year ago. Total interest income was $3,068 million against $3,047 million a year ago. The decrease in net income year-over-year was principally due to a reduction in net interest income related to the CAA product wind down, a decrease in mortgage banking revenue primarily due to the valuation of servicing rights net of hedging activities and an increase in noninterest expense (excluding the prior year notable item). Partially offsetting these increases was a decline in the provision for credit losses.
For the six months, the company reported net interest income of $5,414 million against $5,339 million a year ago. Income before income taxes was $3,948 million against $3,964 million a year ago. Net income applicable to U.S. Bancorp common shareholders was $2,782 million or $1.56 diluted per share against $2,758 million or $1.51 diluted per share a year ago. Return on average assets was 1.45% against 1.58% a year ago. Return on average common equity was 14.2% against 14.9% a year ago. Book value per common share was $22.51 against $20.98 at June 30, 2014. Total interest income was $6,129 million against $6,069 million a year ago.
For the quarter, the company reported net charge-offs were $296 million, compared with $279 million in the first quarter of 2015, and $349 million in the second quarter of 2014.
Given current economic conditions, the company expects the level of net charge-offs to remain relatively stable in the third quarter of 2015.

U.S. Bancorp Presents at 2015 National Association of Water Companies Financial Forum, Jul-15-2015

U.S. Bancorp Unit Invests $5.6 Million to Build New Health Facility in Reno, Nevada

Jun 24 15

U.S. Bancorp announced its U.S. Bank unit is investing $5.6 million in the construction of a new $20 million medical facility in Reno Nevada. The new clinic will be 'Reno's first integrated care facility, where patients will have access to a wide range of medical and wellness services in one location'.

U.S. Bancorp to Pay $44.5 Million to Settle Peregrine Lawsuit

Jun 24 15

U.S. Bancorp has agreed to pay $44.5 million to settle a class-action lawsuit by Peregrine Financial Group customers who lost money in long-running fraud. The $410 billion-asset company's settlement agreement would resolve claims that U.S. Bancorp allowed Peregrine founder Russell Wasendorf to divert funds to himself using a U.S. Bank account. The proposed settlement requires court approval. The settlement also would result in about 14,000 former Peregrine customers being repaid more than 20% of the money Wasendorf diverted, before attorneys' fees and expenses, the court filing said. They could seek up to 31% of the settlement fund in attorneys' fees.

U.S. Bank Names Reba Dominski as Senior Vice President of U.S. Bank Foundation and Community Relations

Jun 24 15

U.S. Bank has hired Reba Dominski as senior vice president of the U.S. Bank Foundation and Community Relations. Dominski brings a wealth of corporate giving and community relations experience to this role, which oversees the U.S. Bank Foundation and employee volunteerism. Dominski joins U.S. Bank from Target Corporation, where she spent more than 20 years, including the past six years as senior director of community relations focused on education. Prior to this role, Dominski worked within several businesses at Target including: merchandising, sourcing, stores, and merchandise planning.

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